Nvidia Soars to Record High, Poised to Overtake Apple as Most Valuable Company

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Nvidia is making waves on Wall Street, closing at an all-time high on Monday and inching closer to unseating Apple as the world’s most valuable company. Shares of the AI chip giant rose by 2.4%, ending the day at $138.07. With investors optimistic about the soaring demand for Nvidia’s AI processors, the company’s market value has now reached $3.39 trillion, trailing only Apple’s $3.52 trillion and surpassing Microsoft’s $3.12 trillion.

Back in June, Nvidia briefly claimed the title of the most valuable company before being overtaken by Microsoft, with these tech titans jockeying for position in a tight race that has captured investor attention.

Nvidia has emerged as a frontrunner in the battle for dominance in the AI sector, outpacing competitors like Alphabet and Amazon. Analysts at TD Cowen noted that major players in AI face a “Prisoner’s Dilemma”—a scenario where each company must continue investing heavily in AI to avoid falling behind. They reaffirmed a $165 price target for Nvidia, labeling it their “Top Pick” amid sustained strong demand for its current AI chips.

Despite recent reports of delays in the production ramp-up for its upcoming Blackwell chips until the fourth quarter, Nvidia has assured investors that existing products are flying off the shelves.

As the quarterly earnings season kicks off, Apple saw a nearly 2% rise in its stock, while Microsoft gained 0.7%. This surge helped lift the S&P 500 by 0.8% to a new record high, showcasing the significant influence Nvidia, Apple, and Microsoft have on the index—together they represent about 20% of its total weight.

Adding to the excitement, Taiwan Semiconductor Manufacturing Co., Nvidia’s chip manufacturer, is projected to report a staggering 40% increase in quarterly profits this Thursday, driven by soaring demand.

Looking ahead, analysts predict that as spending on AI data centers ramps up, Nvidia’s annual revenue could more than double, reaching nearly $126 billion. However, while Nvidia’s impressive rally has propelled the S&P 500 to new heights, some investors remain cautious, wary of a potential slowdown in AI investment that could dampen the current optimism.

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